What assumptions underlie the outlook?

The estimates assume no significant change in underlying economic trends. They also exclude any impact from additional acquisitions that may close during the remainder of the year and the expensing of transaction-related items during the period.

How does the company define Adjusted EBITDA?

Adjusted EBITDA is a non-GAAP measure defined as net income attributable to Waste Connections, plus or minus net income (loss) attributable to noncontrolling interests, plus income tax provision, plus interest expense less interest income, plus depreciation and amortization, plus closure and post-closure accretion, plus or minus impairment and other operating items, plus other expense less other income. Management uses it to evaluate ongoing operating performance, and other companies may calculate it differently.

What drives the gap between net income and Adjusted EBITDA in the outlook?

The reconciliation adds back an estimated $82.5 million income tax provision, $82 million of net interest expense, $245 million of depreciation and depletion, $55 million of amortization, and $7 million of closure and post-closure accretion to the $268.5 million net income estimate.

Is this information considered filed for liability purposes?

No. The company states that the information furnished under Item 7.01 is not deemed filed for purposes of Section 18 of the Exchange Act, is not subject to the liabilities of that section, and is not deemed incorporated by reference in any Securities Act of 1933 filing.

WCN 8-K: Regulation FD — Oct 24, 2024

01—Abstract

Summary

Summary of the 8-K filed October 24, 2024. Cited figures are marked; the original filing is the authoritative source.

Waste Connections, Inc. furnished a Form 8-K under Item 7.01 (Regulation FD Disclosure) reiterating the outlook it highlighted on its October 24, 2024 earnings conference call for the fourth quarter of 2024.

The company estimates fourth-quarter revenue of approximately $2.24 billion^a, net income attributable to Waste Connections of approximately $268.5 million, and Adjusted EBITDA of approximately $740 million, or 33.0% of revenue. The filing's non-GAAP reconciliation shows the building blocks behind the estimate: an income tax provision of approximately $82.5 million (about a 23.5% effective rate), net interest expense of approximately $82 million, depreciation and depletion of approximately $245 million (about 10.9% of revenue), amortization of approximately $55 million (about 2.5% of revenue, or $0.15 per diluted share net of taxes), and closure and post-closure accretion of approximately $7 million. The estimates assume no significant change in underlying economic trends and exclude the effects of additional acquisitions that may close during the remainder of the year and transaction-related expenses.

Because the information is furnished rather than filed, it is not subject to the liabilities of Section 18 of the Exchange Act. The filing is primarily a guidance update, so investors should focus on the Q4 2024 outlook figures and the stated assumptions, which are forward-looking and subject to the risk factors the company lists in its SEC and Canadian securities filings.

02—Key points

Key Highlights

Q4 2024 revenue estimated at approximately $2.24 billion
Net income attributable to Waste Connections estimated at approximately $268.5 million
Adjusted EBITDA estimated at approximately $740 million, or 33.0% of revenue
Income tax provision estimated at approximately $82.5 million, an effective rate of about 23.5%
Depreciation and depletion estimated at approximately $245 million (about 10.9% of revenue); amortization approximately $55 million (about 2.5% of revenue, or $0.15 per diluted share net of taxes)
Estimates exclude impact from additional acquisitions that may close later in the year and transaction-related expenses
Filed under Item 7.01 as furnished information, not deemed filed under Section 18 of the Exchange Act

03—Questions

Frequently Asked Questions

What is Waste Connections' Q4 2024 outlook?
The company estimates fourth-quarter 2024 revenue of approximately $2.24 billion, net income attributable to Waste Connections of approximately $268.5 million, and Adjusted EBITDA of approximately $740 million, or 33.0% of revenue.
What assumptions underlie the outlook?
The estimates assume no significant change in underlying economic trends. They also exclude any impact from additional acquisitions that may close during the remainder of the year and the expensing of transaction-related items during the period.
How does the company define Adjusted EBITDA?
Adjusted EBITDA is a non-GAAP measure defined as net income attributable to Waste Connections, plus or minus net income (loss) attributable to noncontrolling interests, plus income tax provision, plus interest expense less interest income, plus depreciation and amortization, plus closure and post-closure accretion, plus or minus impairment and other operating items, plus other expense less other income. Management uses it to evaluate ongoing operating performance, and other companies may calculate it differently.
What drives the gap between net income and Adjusted EBITDA in the outlook?
The reconciliation adds back an estimated $82.5 million income tax provision, $82 million of net interest expense, $245 million of depreciation and depletion, $55 million of amortization, and $7 million of closure and post-closure accretion to the $268.5 million net income estimate.
Is this information considered filed for liability purposes?
No. The company states that the information furnished under Item 7.01 is not deemed filed for purposes of Section 18 of the Exchange Act, is not subject to the liabilities of that section, and is not deemed incorporated by reference in any Securities Act of 1933 filing.

04—Continue

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